Did you know the area you live in can affect the amount you pay for gas and electricity? Gas and electricity suppliers often charge different amounts depending on where the supply address is located - when you compare price plans, your postcode alone could see you paying more.
So, why do energy prices differ by region? And is there anything you can do to cut the cost of your gas and electricity bills?
The average price you pay for energy in your region is generally influenced by three factors:
The table below highlights the regional price differences for dual fuel energy supply:
|Region||Incumbent Dual Fuel
Bill for Region
|Cheapest Dual Fuel
Bill for Region
These figure are based on usage of 3,100 kWh of electric per year and 12,500 kWh of gas per year. Shows average price across all regions. Assumes payment is made by Monthly Direct Debit. Only showing tariffs which are generally available across most of the UK
Our figures show that Scotland pays the most, with an average annual dual fuel bill of £1,161, while East Midlands pays the least at £1,095 – a difference of £66.
When it comes to the cheapest dual fuel bill by region, South West England is the most expensive, at £819 per year, but East Midlands is the cheapest again, at just £782.
This mean energy customers based in the East Midlands are probably paying less per unit of energy than consumers in all other parts of the country.
On the face of it, your energy bill will be split between the amount you pay for gas and electricity, but there’s actually more to it than that – here’s how Ofgem calculates the breakdown of a typical dual fuel energy bill:
|Annual cost||Percentage of bill|
|Environmental and social obligation costs||8%|
|Supplier pre-tax margin||5%|
|Other direct costs||1%|
The simplest way to cut the cost of your energy bills is to switch to a better deal – compare energy tariffs prices now to see how much you could save. And consider the range of discounts on offer, opting for a dual fuel deal and paying by direct debit can cut costs even further.
Then consider some changes to how you actually use energy, a few simple switches to your routine can soon add up to significant savings, so turn your thermostat down a degree or two, and draught-proof windows and doors.
If you’ve the money to do so, it’s also worth switching any standard light bulbs to energy efficient ones, as well as investing in both loft and cavity or solid-wall insulation. For even more energy-saving tips, check out How to reduce your electricity and gas usage.